East Timoe Oil – Lao Hamutuk

This article contains many errors. The current
Petroleum Fund law requires 90% be invested in
US-dollar-denominated bonds with high ratings,
not 60%. The revision proposed by the Government
does not ask to increase the 3% of TL’s Petroleum
Wealth (not only of the Fund) which can be spent
annually without explanation, but only to weaken
the process needed to spend more than this
guideline. Foreign funding is not discussed in
the Petroleum Fund Law. There was no ban on
altering the law within the past five years, just
common sense that “if it ain’t broke, don’t fix
it” (which still applies today). However, the
changes proposed by the Government also include
removing the BPA (ABP) as operational manager and
politicizing the Investment Advisory Board.

For more detailed and accurate information,
including links to the proposed revisions to the
law and La’o Hamutuk’s submission to the Ministry
of Finance, see
http://www.laohamutuk.org/Oil/PetFund/revision/10PFRevision.htm.

— Charlie Scheiner, La’o Hamutuk

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